Melbourne Mortgage Advisor Shares 3 Hurdles to Loan Approval
Applying for a mortgage loan can become a stressful, time consuming, and frustrating process without the aid of a Melbourne Mortgage Advisor.
As banks are tightening eligibility criteria and digging further into the evidence provided in loan applications to minimise their risk, the services of a Melbourne Mortgage Advisor are more necessary than ever before.
Although a Melbourne Mortgage Advisor will strive to maximise your chances of success in obtaining your loan, here are a few things that might make your mortgage loan application challenging, even for them.
Melbourne Mortgage Advisor assistance can be beneficial
1. Borrowing 95%:
Most lending institutions perceive borrowers who request a loan that equates to 95% of their property’s value as an elevated risk.
Therefore, when you seek the maximum level of finance offered, you must ensure your application is thoroughly prepared, as lending institutions will scrutinise it heavily.
Your Melbourne Mortgage Advisor is aware of the growing propensity of lending institutions to look unfavourably on High Loan to Value Ratio (LVR) loans.
They can place your loan with an institution that is more likely to look favourably on your application. At the same time, your advisor will ensure that the lending criteria of that institution is satisfied through the information provided to them.
As Lenders Mortgage Insurance is always required for these types of loans, the right Melbourne Mortgage Advisor can help members of certain professions who are eligible for professional loan packages, to place their loan with a financial institution that will pay the Lenders Mortgage Insurance for them.
2. Bad Credit History and Spending Habits:
Poor credit histories and bad spending habits indicate you haven’t had a good relationship with finances in the past. Hence, most lenders will immediately “red flag” your application to safeguard themselves from future losses.
A good Melbourne Mortgage Advisor will do as much as they can to help you mitigate your past issues and help you to prepare a loan application that will have a greater chance of success. They will also submit your loan application to lending institutions they know are not as harsh in assessing applications from people with poor credit histories or bad spending habits.
3. Nearing Retirement Age:
Banks can’t blatantly discriminate against you due to your age. But you do owe them a realistic exit strategy. Until and unless you convince them that you will have a sufficient flow of income to clear the mortgage during the life of the loan, the cards are stacked against you obtaining a loan approval.
A Melbourne Mortgage Advisor will help you demonstrate to the lender that after retirement you will either have means other than salary or wages to meet ongoing mortgage commitments or have an appropriate exit strategy to discharge the mortgage.
A Melbourne Mortgage Advisor helps to source the best interest rate
While the three factors mentioned above, and a few others, might lead to your loan application’s rejection, other lenders may be more than willing to give you the loan at a higher rate than the prevailing fixed or variable interest rates.
But how do you determine what’s the best interest rate in the market for your financial situation?
Consult a Melbourne Mortgage Advisor to save yourself from paying unnecessary higher interest rates. With over a decade of experience, Oz Lend is one of the best, long-established, Melbourne Mortgage Brokers.
Mortgage Advisors employed by Oz Lend, can help you to determine the right lending institutions to approach, to increase your chances of success.
Contact Oz Lend
Don’t panic or get cold feet and relinquish your dreams of owning a home. Although many banks have made the screening process more rigorous than ever, others always see an opportunity to do business.
Contacting a Melbourne Mortgage Advisor can help you gain access to their network of lending institutions and increase your chances of successfully obtaining a mortgage loan.